RingCentral Inc. (NYSE: RNG) reported fourth‑quarter and full‑year 2025 results that surpassed expectations. Total revenue rose 5% year‑over‑year to $2.515 billion, with Q4 revenue of $644 million, up 5% from $615 million in Q4 2024. Operating cash flow climbed 28% to $617 million, and free cash flow reached $530 million, a 32% increase. Non‑GAAP earnings per share were $1.18, beating the consensus estimate of $1.14, while GAAP EPS was $0.26.
The company highlighted the momentum of its AI‑first product suite. Annual recurring revenue from customers using at least one monetized AI product more than doubled year‑over‑year and now accounts for nearly 10% of total ARR. “We delivered a solid fourth quarter that capped a strong year of execution, highlighted by record free cash flow and FCF per share. AI is proving to be a strong tailwind, with ARR from customers who utilize at least one of our monetized AI products more than doubling year over year and now approaching 10% of our overall ARR,” said CEO Vlad Shmunis.
RingCentral also announced a quarterly cash dividend of $0.075 per share, payable on March 16 2026, and increased its share‑repurchase authorization to $500 million. “We’re leveraging a scaled, cloud‑native, real‑time communications global platform, and are investing over $250 million in innovation annually. We’re confident in the future of our business, and are excited to initiate our first ever dividend while increasing our share repurchase authorization to $500 million,” added Shmunis. CFO Vaibhav Agarwal noted, “Our 2025 results reflect disciplined execution across growth, profitability, and capital allocation. We expanded GAAP operating margin to 4.8% and non‑GAAP operating margin to 22.5%, generated $530 million in free cash flow, achieved GAAP operating profitability, reduced stock‑based compensation meaningfully, and lowered net leverage to 1.7x.”
Management guided for 2026 with 4–5% revenue growth, a non‑GAAP operating margin of 23.0–23.5%, non‑GAAP EPS of $4.76–$4.97, and free cash flow of $580–$600 million. Net leverage is expected to remain at 1.7x, and net debt is projected to be $1 billion by year‑end. The guidance reflects confidence in continued AI‑driven growth and disciplined capital allocation.
Investors responded favorably to the earnings beat, strong free‑cash‑flow generation, dividend initiation, and optimistic 2026 outlook. The results reinforce RingCentral’s transition to a profitable, cash‑generating business model and underscore the strategic importance of its AI‑first platform.
RingCentral’s focus on AI, disciplined cost management, and robust cash‑flow generation position the company for sustained margin expansion and strategic opportunities. The dividend and expanded buyback program signal management’s confidence in long‑term cash‑flow prospects, while the 2026 guidance indicates a continued emphasis on profitable growth and shareholder value creation.
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